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Seniors Housing Grant

The Seniors Housing Grant (SHG) is a once off grant of up to $8500, available to natural persons, aged 60 years or more, who are purchasing or building a new home valued at up to $400 000 and will phase out for eligible homes valued at up to $450 000 for home owners. The SHG is not available in addition to the First Home Owner Grant (FHOG).

The SHG applies to:

a contract to purchase a new home entered into between 1 July 2014 and 30 June 2016 (inclusive);

a comprehensive home building contract for a new home entered into between 1 July 2014 and 30 June 2016 (inclusive) where the contract states that the building work will be completed within 18 months of commencement or the building work is actually completed within 18 months of commencement;

a contract for the purchase of a new home off-the-plan entered into between 1 July 2014 and 30 June 2016 (inclusive) where the contract states that the building work is actually completed on or before 31 December 2017; and

an owner builder where construction of the new home commences on or after 1 July 2014 and before 30 June 2016.

The SHG is available to natural persons aged 60 years and over who purchase or build a new home as their principal place of residence.

Only one SHG is payable in relation to a particular new home and at least one of the applicants must:

satisfy the Commissioner that they are aged 60 years or over; and

occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months after the completion of the eligible transaction.

In addition an applicant is ineligible to receive a SHG if the applicant or their spouse/domestic partner has previously received and retained a SHG.

Market Value

The market value of a property includes the market value of the land, the home and any other improvements.

Example 1

Craig bought a block of land in 2007 which is still vacant and is now valued at $200 000. Craig signs a comprehensive home building contract to build a new home on the land for consideration of $300 000. Craig will not be eligible for the SHG because the value of the home will be $500 000 which is above the value cap of $450 000.

Consideration

Where the consideration for an eligible transaction is less than $8500 the amount of the SHG will not exceed the consideration for the eligible transaction.

Example 2

Mike buys a new home from his brother that is valued at $375 000 for a consideration of $1. The amount of the SHG will be $1.

Property Market Value Cap

A property value cap applies. The property value cap is $450 000 based on the market value of the property purchased or built.

In the case of comprehensive home building contract the market value is:

the sum of the consideration for the building contract and the market value of the land on which the home is to be built as at the time the contract is made; or

where the consideration for the building contract is less than actual costs, the sum of the actual costs to build the home and the market value of the land on which the home is to be built as at the time the building contract is made.

NOTE: where a comprehensive home building contract includes specific values for items that are not necessary for occupation of a place of residence, RevenueSA may deduct these components from the consideration payable for the building work when determining the market value of the property. Some items that are considered not necessary for occupation as a place of residence include driveways and paving, landscaping, air conditioners and built in robes. See Information Circular 64for more details.

In the case of an owner builder the market value is:

the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.

How much is the SHG?

A SHG of $8500 is available for new homes where the market value does not exceed $400 000, and phases out for new homes with a market value between $400 000 and $450 000 at a rate of $17 for every $100 in excess of $400 000.

The table below outlines the maximum grant available in increments of $5000 increases over $400 000.

Market Value

Up to $400 000

$8500

$405 000

$7650

$410 000

$6800

$415 000

$5950

$420 000

$5100

$425 000

$4250

$430 000

$3400

$435 000

$2550

$440 000

$1700

$445 000

$850

$450 000 and above

Nil

It should be noted that if the consideration for the purchase a new home is less than $8500 (e.g. where a new home is inherited), the amount of the SHG paid will not exceed the consideration.

Can I receive multiple SHG's?

Only one SHG is payable in relation to a particular new home. That is, where the SHG has been approved and paid in relation to a property, no further SHG can be paid in relation to that property, unless that previously paid SHG has been repaid.

In addition an applicant is ineligible to receive a SHG if the applicant or their spouse/domestic partner has previously received and retained a SHG.

What are the eligibility requirements?

Date of eligible transaction

Eligible transactions must have been entered into between 1 July 2014 and 30 June 2016 (inclusive)

Building Completion Requirements

If you have entered into a comprehensive home building contract to build a new home:

The contract must state that the eligible transaction must be completed within 18 months after the laying of the foundations for the home is commenced or, in any other case, the eligible transaction is completed within 18 months of after the laying of the foundations for the home is commenced.

If a completion date is not stated in the contract, you cannot receive the SHG until the building is ready for occupation as a place of residence.

If you have commenced building a new home as an owner builder:

The transaction is completed within 18 months after its commencement date.

You cannot receive the SHG until the building is ready for occupation as a place of residence.

The Commissioner may, in a particular case, extend the time within which an eligible transaction must be completed if the Commissioner considers there are proper reasons for doing so.

If you have entered into a contract to buy a new home off-the-plan:

The contract states that the eligible transaction must be completed on or before 31 December 2017 or in any case, the eligible transaction is completed on or before that date.

You cannot receive the SHG until the building work has been completed and settlement has occurred.

Market value of home

The market value of the home to which the eligible transaction relates is less than $450 000.

What Transactions are ineligible?

The following transactions are ineligible for the SHG:

1. Where the Commissioner is satisfied that the contract that formed the basis of the eligible transaction replaces a contract made before 1 July 2014 and that earlier contract was:

a contract for the purchase of the same home; or

a comprehensive home building contract to build the same or a substantially similar home;

2. Where the Commissioner is satisfied that a contract that formed the basis of an eligible transaction for the purchase (or purported purchase) of a new home does not constitute a genuine sale of the new home.

For these purposes, the Commissioner may take into account:

whether the parties to the contract are close associates;

whether the parties are otherwise not at arms length; or

such other matters as the Commissioner considers appropriate.

Two persons are considered close associates if:

one is a relative (spouse/domestic partner; parent or remoter lineal ancestor; son, daughter or remoter ancestor; or brother or sister) of the other;

they are related bodies corporate (within the meaning of the Corporations Act 2001 (Cwlth));

one is a body corporate and the other is a director, manager or officer of the body corporate;

one is a body corporate (other than a public company whose shares are quoted on a financial market) and the other is a shareholder in the body corporate;

one has a right to participate (otherwise as a shareholder in a body corporate) in income or profits derived from a business conducted by the other;

they are in partnership; or

one is a beneficiary under a trust or an object of a discretionary trust of which the other is a trustee.

Example 3

Jack who is 61 years of age built a new home in 2013 which is valued at $425 000 and is yet to be occupied as a place of residence. Jack enters into a contract to sell 5% of his interest in the home to his wife for $21 250. The Commissioner becomes satisfied that the contract does not constitute a genuine sale of a new home and does not authorise payment of SHG.

The application of the above criteria will be considered on a case by case basis taking into account all of the facts and circumstances.

When is the SHG paid?

The date the SHG is paid depends on whether you are building or buying, and if you are applying through an Approved Agent or through RevenueSA. The following table details the various scenarios.

Type of transaction

Applying through

Payment of grant

Purchase of a new home or an off-the-plan home

Approved Agent

At date of Settlement

RevenueSA

Within five days after approval of the application, following proof of lodgement for registration with the Lands Titles Office (please complete a Confirmation of Settlement form).

Contract to build

Approved Agent

On date of the first progress payment by Approved Agent

RevenueSA

Within five days of lodging the first progress payment invoice and approval of the application by RevenueSA

Owner builder

Approved Agent

When application with required supporting evidence is provided to the Approved Agent.

RevenueSA

Within five days of RevenueSA approving the application lodged with required supporting evidence.

How do I apply?

An application must be received within 12 months of the completion of the eligible transaction.

You can complete and lodge the application form with the financial institution providing your finance as part of buying or building your home, if the financial institution is Approved Agent.

RevenueSA may require documentary evidence to substantiate your claim for the SHG.

False Claims

There are substantial penalties for providing incorrect or misleading information in connection with an application for the SHG. RevenueSA conducts investigations and compliance checks to ensure SHG is only provided to entitled applicants

RevenueSA undertakes both random and targeted auditing of applications with the benefit of current and historical data held by commercial organisations and by state and territory agencies.

Further Information

If you are unsure about any aspect concerning your eligibility, it is important that you contact RevenueSA on 08 8226 3750 or email fhog.support@sa.gov.au for clarification before proceeding with your application